Financing the budget deficit in Malta : an evaluation

Abstract

This dissertation develops a conceptual framework which may be used in the analysis of the short- and long-term effects emerging from the manner in which the Maltese Government financed its borrowing requirement during the period 1987-92. The different methods used for financing the deficit are reviewed within the constraints of the legal and institutional framework. Aspects concerning the composition, distribution and maturity structure of the debt issued are analysed. Theoretical aspects of the financing of the Govern ment's budget deficits and the extent (if any) to which they can be applied to the Maltese scenario are also examined. A summary of the main arguments and future policy recommendations concludes this dissertation.